Hotel and coffee shop operator Whitbread has signed a new syndicated bank five year facility of £650m, replacing its existing bank loan facilities of £930m.
The move will allow the firm to follow its policy of diversifying its sources of debt and extending its maturity profile.
In the last two years total funding of the equivalent of £250m has been made available from private placement notes with maturities from 2017-2021, to which has been added this new five year £650m.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The effective blended interest rate on the group's total borrowings for the balance of this financial year will be just over 6%, falling to around 5.5% from February 2012 on the maturity of a number of interest rate swaps.
Finance director of the group, Christopher Rogers, said: "We are pleased to have secured the support of our core relationship banks for a loan at an attractive rate, which together with our private placement notes, meet the medium term funding needs of the group to support our growth programme."
The share price fell 0.49% to 1,636p by 08:15.
NR
-
Reeves warned against property tax shake-up – 3 ways it could backfire on first-time buyersRachel Reeves reportedly has her eye on high-end property taxes in the upcoming Budget, but there are concerns a shake-up could unintentionally hamper those trying to get on the housing ladder
-
Average Brits want to retire five years before they can – who has the widest retirement gap?Brits are expecting to work for longer than ever but there are big disparities in the number of extra working years predicted. A small tweak could help close the gap
